Required information [The following information applies to the questions displayed below.) Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year $ 182,000 110,000 628,000 920,000 383,500 (167,000) $1,136,500 $ 126,800 89,000 544,000 759,800 317,000 (113,000) $ 963,800 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ $ 123,000 46,000 169,000 89,000 34,100 123,100 613,600 228,400 125,500 $1,136,500 586,000 187,000 67,700 $ 963,800 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,882,000 Cost of goods sold 1,104,000 Gross profit 778,000 Operating expenses Depreciation expense $ 54,000 Other expenses 512,000 566,000 Income before taxes 212,000 Income taxes expense 47,200 Net income $ 164,800 Additional Information on Current Year Transactions a. Purchased equipment for $66,500 cash. b. Issued 13,800 shares of common stock for $5 cash per share. c. Declared and paid $107,000 in cash dividends. Required: Prepare a complete statement of cash flows using the direct method for the current year. (Amounts to be deducted should be indicated with a minus sign.) Required information Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Cash received from customers $ 1,861,000 Cash paid for inventory 628,000 Cash paid for other expenses (512,000) Cash paid for income taxes (35,300) $ 1,941,700 Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment (66,500) (66,500) Net cash used in investing activities Cash flows from financing activities Cash paid for dividends Cash received from issuing stock (107,000) 69,000 Net cash used in financing activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year (38,000) $ 1,837,200 126,800 $ 1,964,000